Contactless payments offer a fast and convenient way to complete transactions, but they often come with certain limits to enhance security and reduce fraud risks. Here’s a detailed look at the limits for contactless payments and how they might affect your transactions.
Current Contactless Payment Limits in the UK
Standard Limit: As of October 2021, the standard contactless payment limit in the UK is £100 per transaction. This means customers can make purchases up to this amount without needing to enter their PIN or provide a signature.
Cumulative Limit: Some card issuers set a cumulative limit for contactless transactions. After a certain amount of cumulative spending (e.g., £300), the customer may be required to enter their PIN for the next transaction to reset the cumulative total.
How Limits Affect Transactions
Single Transaction Limit: If a purchase exceeds the £100 limit, the customer will need to use the chip and PIN, chip and signature, or another payment method. This ensures added security for higher-value transactions.
Multiple Small Transactions: Customers can make multiple small purchases without entering their PIN, provided each transaction is within the £100 limit. However, reaching the cumulative limit may trigger a PIN entry request.
High-Frequency Purchases: For high-frequency purchases, such as those in cafes or public transport, customers can benefit from the speed of contactless payments without repeatedly entering their PIN until the cumulative limit is reached.
Setting and Adjusting Limits
Card Issuers: The specific limits on contactless payments can vary depending on the card issuer (bank or financial institution). Some issuers might offer lower limits for added security.
Merchant Settings: Merchants generally cannot set or adjust the contactless payment limits, as these are controlled by the card networks and issuers.
Customer Preferences: Some customers can request lower limits on their contactless cards for added security by contacting their card issuer.
Security Measures
Transaction Monitoring: Contactless transactions are monitored for unusual activity, and suspicious transactions may trigger additional security checks.
PIN Verification: After reaching the cumulative spending limit, customers will be required to enter their PIN to reset the limit, ensuring that the card is still in the possession of the authorized user.
Card Replacement: If a contactless card is lost or stolen, customers should report it immediately to their card issuer to prevent unauthorized transactions.
Conclusion
The contactless payment limit in the UK is £100 per transaction, with some card issuers implementing cumulative spending limits for added security. Understanding these limits helps ensure smooth and secure transactions for both merchants and customers. If a transaction exceeds the limit, customers will need to use an alternative payment method, such as a chip and PIN. For specific limit settings and adjustments, customers should contact their card issuer. This system balances convenience with security, allowing for fast transactions while minimizing fraud risk.
